Be prepared to have to pay extra change if you have a Netflix subscription! The streaming platform is further increasing the prices of its packages in order to continue producing original content.
We suspected it, but the bad news has been confirmed: Netflix is going to increase its prices in France! In letter sent to shareholders on the occasion of the release of its quarterly financial results, Netflix announces a price increase in the United States, the United Kingdom and France, on two of its four subscriptions. This is very bad news in this period of widespread inflation, especially since the company has already significantly increased its prices since its arrival on the market. Netflix explains in its letter “that as we bring more value to our members, we occasionally ask them to pay a little more”.
Thus, the Standard offer with advertising remains at the price of €5.99 per month, while the Essential subscription goes from €8.99 to €10.99 per month – an increase of 22%. For its part, the Standard subscription remains at €13.49. On the other hand, the Premium plan saw an increase of 11%, going from €17.99 to €19.99 – which, at around €240 per year, represents a significant budget for a family. The new prices are effective now, proof of this is the new price list on the official website. Note that the Essential subscription will disappear in Germany, Spain, Japan, Mexico, Brazil and Australia next week – it is already no longer offered in the United States, Canada, the United Kingdom and in Italy (see our article). For the moment, it is still available in France – even if it is hidden in France, but until when?
Netflix prices: Essential and Premium subscriptions increase
In France, Netflix has increased its prices twice since January 2019 for its ad-free offers. The Standard subscription thus increased from 10.99 euros per month in June 2019 to 13.49 euros in August 2021, a total increase of 23%. At the same time, the Premium plan increased from 13.99 euros per month to 15.99 euros, then to 17.99 euros, or a 29% increase in total. As for the Essential offer, it “only” increased by 12.5% in August 2021, going from 7.99 euros to 8.99 euros per month. In the meantime, Netflix has set up a significantly cheaper entry-level plan, at 5.99 euros per month, but with advertising breaks called simply Standard with advertising (see our article).
The very serous Wall Street Journal had warned of this increase in its edition of Tuesday October 3, 2023. According to the American daily, the streaming platform was in fact preparing to once again revise its prices upwards. In the United States and Canada initially, but we suspected that other countries would have to follow, as was the case with previous tariff changes. However, we thought that the platform would wait until the end of the strikes in Hollywood to announce the painful one, but Netflix clearly has no time to lose.
Netflix increase: an increase to better pay screenwriters?
Netflix’s motivations are multiple. First, like all companies and individuals, the platform must face generalized inflation, with a significant increase in the costs of the energy essential to its servers. Then, after reigning supreme over video on demand for a long time, Netflix must now face formidable competition, notably from Disney+, which will also increase its prices (see our article).
Finally, and above all, the platform was not spared by the strike of screenwriters and actors in Hollywood. A social movement which blocked all audiovisual productions for months, these creative professionals are demanding better remuneration and safeguards in the face of the arrival in the introduction of generative artificial intelligence which could completely change the rules of game, leading to numerous job cuts. Agreements have already been reached with the screenwriters, which will have an economic impact for streaming platforms like Netflix if they wish to continue producing new original content – on the other hand, the approximately 160,000 actors, stuntmen, dancers and other professionals who joined the strike in July, still do not have an agreement with the various studios.
The fact remains that Netflix had a very good third quarter with a turnover of 8.5 billion dollars (i.e. +8% compared to last year), profits of 1.7 billion (+20%) and 8.8 million new subscribers. Results that stem from SVOD’s decision to charge for account sharing, which has proven to be very lucrative for the company. “The churn level remains low, beyond our expectations, and the conversion of those using a third party account into paying subscribers demonstrates good retention,” she rejoices. Everything is going well in the best of all possible worlds… except for the users’ wallets!